THE 1992 CAMPAIGN: The Republicans;

By MICHAEL WINES,

Published: September 3, 1992

FORT WORTH, Sept. 2—
President Bush put his authority over foreign policy to work on behalf of his political campaign today, handing nearly $8 billion in contracts and grants to hard-pressed farmers and arms workers.

At a General Dynamics Corporation plant here, the President appeared beneath a banner proclaiming "Thanks Mr. President" to announce that he had approved the sale of up to 150 of the company's F-16 fighters to Taiwan, reversing nearly 10 years of American policy over the stiff objections of the Chinese Government.

Administration officials traveling with Mr. Bush said the deal could eventually bring American factories up to $6 billion in contracts, and more in related benefits. It is also likely to preserve thousands of jobs at a factory in Texas, a state critical to his campaign, and at military plants in the critical battleground state of California as well as in Connecticut and Indiana. Help for Wheat Farmers

Earlier, in rural South Dakota and West Texas, Mr. Bush told farmers that he would spend $1 billion to subsidize American wheat sales abroad. He also promised $755 million more in aid to farmers whose crops were damaged by Hurricane Andrew and by flooding in East Texas last spring. Mr. Bush, who has made free trade a centerpiece of his campaign, has long demanded that other countries stop subsidizing farm exports.

Mr. Bush's announcements clearly fit with the strategy laid out by his chief of staff, James A. Baker 3d: to use the powers of his Presidency to help his re-election chances and to combine, whenever possible, Mr. Bush's political appearances with policy initiatives.

While Mr. Bush traveled, Defense Secretary Dick Cheney signaled in Washington that more Government largess might yet be to come. He gave the clearest sign so far that Mr. Bush would authorize the sale of F-15 fighter planes to Saudi Arabia, a deal that could save thousands of jobs in Missouri, where the planes are made, but also cause Mr. Bush some trouble with pro-Israeli Jewish voters. Roll Out the Barrels?

Gov. Bill Clinton, the Democratic nominee, was silent on the arms sale to Taiwan. But he quickly branded the farm subsidies the sort of election-year pork barrel politics that Mr. Bush frequently says is Congress's preserve.

"This is pure pork barrel politics," said a Clinton campaign spokeswoman, Dee Dee Myers. "Last month, bragging on his mid-session budget review, this guy said he was going to eliminate the agriculture export enhancement program to save $3 billion over five years. Today, he goes before the farmers and tells them this program is vital."

The White House denied any political motivation and sought to reinforce its point by leaving Mr. Bush's campaign staff at home on the two-state trip, although it was paid for with campaign funds. Public Relations Windfall

Even as it denied political motivations for Mr. Bush's announcements, the White House went out of its way to reap the public relations windfall. Here, Mr. Bush spoke from a platform flanked by two steel-gray F-16 fighters, beneath a banner reading: "Jobs for America. Thanks Mr. President."

Addressing the crowd, Mr. Bush said, "I wanted to come to General Dynamics to personally make a statement that concerns all of you, your families and this wonderful community." He added: "This F-16 is an example of what only America and Americans can do."

The sale to Taiwan of the F-16, which is designed for air-to-air combat, had been expected for some time. Officials here, speaking on condition of anonymity, said the sale would keep the Fort Worth plant open, saving 3,000 jobs, and preserve 7,000 elsewhere, mainly in Texas and Connecticut.

The United States has refused Taiwan's requests for advanced fighters for close to a decade as part of a 1982 agreement with China that reduced American arms sales in exchange for a Chinese promise to reduce tensions with the Taiwanese.

But the Administration said several factors tipped Mr. Bush in favor of the deal this summer.

Foremost was China's own growing arsenal of modern Russian-built fighters, including a "sizable number" of Su-27 jets which Beijing purchased about two months ago, the official said.

Taiwan's air force consists largely of F-104 Starfighters, a 1960's-era jet, the Administration said. Taiwan is seeking 150 fighters, but the actual number being sold probably will be closer to 120, the official said.

He acknowledged that the prospects that China would actually use any strategic advantage to overwhelm Taiwan were minuscule. But it also became clear that Taiwan was prepared to buy jets from other nations if the United States rejected the sales. Hoping to Harvest Votes

Earlier, Mr. Bush toured the Great Plains and rural West Texas in search of farm votes. In Humboldt, S.D., the President met about 150 farmers at a tiny farmhouse to denounce Mr. Clinton as a threat to free trade and the booming market for American agricultural exports.

He maintained that the Arkansas Governor had become a pawn of trade unions by refusing to take a stand on the biggest free-trade pact of all, a new agreement to remove trade restrictions among Canada, the United States and Mexico. The pact faces a potentially difficult battle in Congress.

Yet what interested the farmers most was Mr. Bush's pledge to increase subsidies to farmers in the United States' continuing trade war with Europe over the market for wheat.

Mr. Bush said he would spend another $1 billion to subsidize American wheat exports in markets that compete with the European Community, which has been selling its wheat far below cost through much of the last decade.

In South Dakota, and later at a rally in Shallowater, near Lubbock, Tex., Mr. Bush also dispensed some $755 million in relief for recent crop disasters. -------------------- Angry Chinese Response

JAKARTA, Indonesia, Thursday, Sept. 3 (Reuters) -- China said today that the jet sale to Taiwan would violate a decade-old United States policy toward China and that Washington would be held accountable for any "serious consequences."

Foreign Minister Qian Qichen of China told reporters in Jakarta, where he was attending a meeting of the movement of nonaligned nations that the sale was "a very serious incident."